Slot machine giant International Game Technology announced a deal Tuesday to replace 7,000 video poker machines at casinos nationwide that are operated by Caesars Entertainment Corp.
Financial terms were not disclosed but IGT said the deal was part of the largest gaming re-investment Caesars has made in 10 years. The announcement was made on the opening morning of the Global Gaming Expo in Las Vegas.
In a note to investors, Union Gaming Group Managing Director Bill Lerner said the deal could be worth as much 6 cents to 7 cents in annual earnings per share to IGT, but it was unclear when shipments of the games begin and over how long of a time frame they will be spread out.
“Overall, this is a positive data point for IGT as it is a pretty sizable order in a weak macro environment for slots,” Lerner said.
IGT Executive Vice President of Global Sales at IGT Eric Tom said the transaction strengthens the company’s “strong foothold in the video poker community.”
Caesars operates more than 50 casinos nationwide, including 10 resorts on or near the Strip.
Caesars Entertainment Senior Vice President of Gaming Melissa Price said replacement of the company’s video poker machines “is just one of many initiatives Caesars has undertaken over the last several years.”
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